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7:50 PM Fri Jul 24 72% AA v2.cengagenow.com C h + Apple Bing Google Yahoo Favorites The symbol...f SparkNotes Critical Essa...-Champaign Favorites . . . Ch. 28: Homework ? Strategic Initiatives and CSR Get Hitched Inc. is a production company that is in the process of testing a strategic initiative aimed at increasing gross profit. The company's current sales revenue is $1,200,000. Currently, the company's gross profit is 35% of sales, but the company's target gross profit percentage is 40%. The company's current monthly cost of production is $780,000. Of this cost, 60% is for labor, 30% is for materials, and 10% is for overhead. The strategic initiative being tested at Get Hitched is a redesign of its production process that splits the process into two sequential procedures. The make up of the costs of production for Procedure 1 is currently 50% direct labor, 45% direct materials, and 5% overhead. The makeup of the costs of production for Procedure 2 is currently 55% direct labor, 25% direct materials, and 20% overhead. Company management estimates that Procedure 1 costs twice as much as Procedure 2 1. Determine what the cost of labor, materials, and overhead for both Procedures 1 and 2 would need to be for the company to meet its target gross profit at the current level of sales. Cost makeup of Procedure 1: Direct Labor 240,000 Direct Materials 216,000 Overhead 24,000 Total 480,000 Cost makeup of Procedure 2: Direct Labor 132,000 Direct Materials 60,000 Overhead 48,000 Total 240,000 2. The company's actual direct materials cost is $223,200 for Procedure 1. Determine the actual cost of direct labor, direct materials, and overhead for each procedure, and the total cost of production for each procedure. Cost makeup of Procedure 1: Direct Labor -240,000 X Direct Materials 223,200 Overhead -24,000 X Total 487,200 X Cost makeup of Procedure 2: Direct Labor -132,000 X Direct Materials -60,000 X Overhead -48,000 X Total -240,000 X a Than - planning a CCD initiation to man of the indirect materials used in production during Dramadura 2 Check My Work 3 more Check My Work uses remaining. Previous Next Assignment Score: 84.31% All work saved. Save and Exit Submit Assignment for Grading750 PM Fri Jul 24 "5' 72%E}